PSPCL agrees to HLC’s recommendations regarding Mundra UMPP’s PPA

Punjab State Power Corporation Limited (PSPCL) has agreed to the high-level committee’s recommendations to amend the PPA with Tata Power for its 4,000 MW Mundra ultra mega power project in Gujarat. Purchasing power from any other source would be costly compared to the Mundra UMMP, so PSPCL has agreed to the recommendations on certain conditions and sent its plan to the cabinet for approval. The Gujarat government’s high-level committee, set up in October 2018, proposed tariff relief for power plants that were based on imported coal. It recommended lenders to write off a part of their loan to the projects to lower the fixed component in the tariff by Re 0.20 per kWh and reduce the debt to a sustainable level.